1. Part A: UK Commercial Real Estate

2. Chart A.12 CRE transactions fell in early 2016
UK CRE transactions (gross quarterly flows)
Sources: The Property Archive and Bank calculations.

3. Chart A.13 CRE yields have continued to fall
CRE and government bond yields
Sources: Bloomberg, MSCI and Bank calculations.

4. Chart A.14 Real estate investment trust share prices have fallen sharply following the referendum
Real estate investment trusts and FTSE All-Share indices, 17 June–1 July 2016 (a)
Sources: Bloomberg and Bank calculations.
(a) 100 = closing price on 23 June..

5. Chart A.15 Real estate investment trust share prices have fallen sharply following the referendum
Loan to value ratios in new UK CRE lending according to data from two large loan advisors (a)
Sources: CBRE, Laxfield Capital and Bank calculations.
(a) Data are based on actual lending (CBRE) or loan requests (Laxfield Capital).

6. Chart A.16 Debt financing in UK CRE markets has been rising
UK CRE debt reported to De Montfort University survey
Source: De Montfort University.

7. Chart A.16 High-LTV CRE lending is more common among smaller banks
LTV distributions for the stock of UK lenders’ CRE loans at end-2015 (excluding residential and development loans)(a)
Source: Sources: Bank of England, Investment Property Databank (IPD UK), PRA and Bank calculations.
(a) For major UK banks, the LTV distribution is estimated using a stratified sample of loan-level data on banks’ CRE portfolios at the end of 2013, loan-level data on their gross CRE lending in 2014–15, and CRE price indices. For smaller UK banks, the LTV distribution is from portfolio-level data as of end-2015.
(b) Value of total outstanding CRE loans (excluding development and residential loans).
(c) ‘Major UK banks’ covers Barclays, HSBC, Lloyds Banking Group, RBS and Santander UK, the largest UK CRE lenders within the major UK banks peer group.
(d) ‘Smaller UK banks’ includes banks and building societies with total assets under £50 billion.